This page will give information specific to each of the individual properties in the portfolio. Some of my property projects are finished, others are nearing completion, but all my properties could be improved and all need to be maintained. There is a website, www.obeo.com/rick1 that has each property listed individually. There is a link at the top of the page to access that website. I will be adding more and more information to each of the listings as time allows. At this point there are no sale prices listed on the website. Real estate values have been decreasing for the past five years. But many indicators now express an upward movement, be it ever so slight. I could be the lender on my free and clear properties but any properties with a mortgage would need to be cashed out. See list below.
Purchasers interested in part or all of the real estate portfolio, who wish to avoid paying all the closing costs related to purchasing properties from traditional lenders, can get a huge break by purchasing my free and clear properties. I can be your lender if I can verify your ability to perform. I am currently selling my free & clear properties on a rent to own basis. The Tenant/Purchaser pays one single monthly payment that does not change when the sale closes. The purchaser qualifies if I can verify their income source. If they can afford the monthly rent payment then they can afford the Sale Contract payment. It is that simple. Within the two years I have put 7 of my free & clear properties under rent to own contracts. All seven contracts are similar in terms and conditions. The tenant/ purchaser pays their monthly payment to my accountant. She puts $200.00 of each payment into a down payment account and puts the balance into my business account as a rent payment until the sale closes. Once the tenant/purchaser has accumulated his $5,000.00 down payment the sale is closed and the purchaser continues to pay the same monthly payment on a note secured by a deed of trust payable at 9% per annum computed on the unpaid monthly balance. The only variable in the sale contract is their amortization schedule. I fit the length of the contract to their budget so that I know they can make their payment. They vary in pay off length from 10 years to 35 years but they always have the option of paying more per month in order to reduce their balance or pay the entire contract off without a prepayment penalty. The biggest problem most people have who wish to own property is that they can't qualify for a traditional bank loan and, or. they can't save the money for a down payment. My rent to own contracts solves both their problems. Their down payment is accumulated as they make their monthly rent payments. If they have a perfect payment record for 25 consecutive months, there is no reason to expect the purchaser not to continue making their mortgage payment. I have 12 free & clear properties that I am in the process of putting under contract. The income that I am creating using the rent to own method of selling my free & clear property will be added to the current income produced by the other properties in the portfolio. The combination of the current net positive cash flow of the property portfolio and my ability to participate as a Lender make for some varying approaches to the formation of a deal using creative financing.
The properties in the portfolio must be sold in a specific order from the worst net positive cash flow to the best net positive cash flow. I must maintain the highest net I can until the last property in the portfolio is sold. So logic demands that the lowest net positive cash flow properties must go first. The two unimproved lots in the Deerhaven, which have the largest negative cash flows are located at E41 & E142 Leffler Loop Road Grapeview WA 98546(Mason County Parcel numbers 22114-77-90021& -90013). They have a combined mortgage balance of $80,000.00 with a payment of $370.00 per month at 4% until the principle balance is paid in full. They can be sold separately as each has deed release amounts in partial fulfillment of the mortgage. Out of the 20 properties I own these two lots have the largest negative cash flow. I am advertizing these properties at the prices listed below, as Rent to Own with the cooperation and approval of the lender. If I sell them on Rent to Own contracts I will be receiving $650.00 on each lot. There would be a five year cash out in their contract. That would give them two years of rental possession and 3 years of ownership possession, which is more than enough time to obtain a construction loan which would pay off the property. During the rental period $200.00 per month, per lot would be put aside in a down payment account and $450.00 per month would be disbursed as rent. That would leave a net spendable of $530.00($450+$450=$900- $370= $530) per month for the first two years and $930.00 ($650+$650=$1300-$370=$930) per month for the following three years when the unpaid principle balance will be due and payable. When the needle pierced the expanding equity balloon I had just applied for a building permit on the smaller 1.5 acre lot. In my opinion it is far and away the best lot in the 28 lot development. It is the only lot in the development that has an an asphalt driveway leading to a very private, secluded cleared building site surrounded by huge evergreen trees. It is also the only lot in the development with a winter creek running the entire length of the lot. It is also the only lot in Deerhaven with the most expensive house sold in the development directly across the street. As part of the preparation for a building permit the septic system drain field has been installed and approved by the County. A ditch has been dug from the power and water source to the building site. This lot is 100% ready for construction. The other lot is mortgaged with the same private lender and is the largest lot in the development. It is 100% natural forest with the exception of a small cleared building site close to the road. Both lots are protected with recorded Covenants & Restrictions, a recorded Road Maintenance Agreement and a recorded Community Water Agreement. The three vacant lots remaining in the Deerhaven development are bordered by nice homes that were built in 2005.
The two homes are located at 290 & 330 Leffler Loop Road Grapeview WA 98546(parcel #'s 22114-77-90072 & 22114-77-90052). They are rented for $1,200.00 each. They are newer homes requiring little or no maintenance. The 2015 property taxes for 290 are $2,180 & $1,944 for 330($4124 total). Insurance for each home is $726($1452 total).
Annual debt service is $23,784( +T&I of $4,850=$28,634.00. Annual income is $28,800. This results in a slight positive cash flow on each home. The tenants in 330 Leffler loop Road have occupied the home from the time it was completed in 2006 to now. Both 1700 square foot homes are on 1.5 acre lots. One home floor plan is a mirror image of the other home. They are both 3 bedroom, 1&3/4 bath single story open living ramblers with three bedrooms down the hall. Pictures can be seen if you click the Current Properties Link. The only other property with a mortgage in the 14 property portfolio offering is my office building. That property has the largest positive cash flow . The other 9 properties being offered in the portfolio are free & clear. Below is a summary of the entire Property Portfolio Offering.